Sam Bankman-Fried’s trial is telling a story of classic financial deceit
The courtroom drama unfolding around FTX founder Sam Bankman-Fried (SBF) has all the ingredients of a binge-worthy Netflix series, replete with a cast of shady characters and a plot that thickens with each passing day. Among the highlights were SBF's lofty presidential ambitions and a staggering $100-150 million bribe to Chinese officials, which add a surreal twist to the narrative.
If SBF aimed to script a thrilling courtroom drama for his Netflix debut, he's nailed it. However, when it comes to establishing his innocence, the plot leaves much to be desired.
The courtroom was electrified by testimony from Caroline Ellison, the former CEO of Alameda Research, FTX’s trading arm. It resonated with brutal honesty that's rare in such high-stake trials. It was emotional and raw, in a sincere way. One shocking revelation she shared was that the company created seven fraudulent balance sheets created seven fraudulent balance sheets, laid out for SBF to cherry-pick one that would best serve his agenda.
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“When I started working at Alameda, I don’t think I would have believed you if you told me I would be sending false balance sheets to our lenders, or taking customer money, but over time, it was something I became more comfortable with,” Ellison told jurors.
The jury doesn't seem to need a spoiler alert to predict the ending of this story. The overwhelming evidence points towards a guilty verdict, a risk calculus that seems to elude SBF. Which isn’t surprising given that he was ultimately responsible for calculating the odds for FTX’s risk management before it imploded.
Fun Fact from the FTX Trial: Caroline Ellison prepared seven different fake balance sheets to
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